Government Standards for Gas Reimbursement

The IRS defines the standard mileage rate annually. The rate is used in the calculation of the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. The rate applies to employees, self-employed individuals or other taxpayers wishing to receive tax deductions for certain driving costs.

The standard mileage rate for business is based on an annual study conducted by independent contractor, Runzheimer International. The study examines the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study, according to the IRS.

The standard mileage rates for the use of a vehicle is 51 cents per mile for business miles driven; 19 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations. All rates are effective as of Jan. 1, 2011. The IRS will only publish updates if the current mileage rates change.

A business owner cannot use the business standard mileage rate for more than four vehicles used simultaneously. In 2011, the IRS modified the business standard mileage rate allowing taxpayers to use the rate for taxi and transport business. As late as 2010, taxpayers could not use the business standard mileage rate for such businesses.